XRP has once again lost its position as the fourth-largest cryptocurrency, with litigation mounted against Ripple after one of its main investors joined SEC in filing a complaint against the project.
According to Bloomberg’s January 6 study, Tetragon, one of the leading participants in the $200 million Series C funding round for Ripple in 2019, lodged a lawsuit against the company at the Delaware Chancery Court.
The investment company says that it is pursuing a court to “force its contractual right to require Ripple to redeem” Series C prefered shares owned by Tetragon. In addition, the company asks the court to prohibit Ripple from using “any cash or other liquid assets” before the case has been settled.
Ripple replied to the charges, arguing that the case had “no merit” and accusing Tetragon of taking advantage of the “lack of regulatory clarity” in the United States in bringing the complaint.
The company’s executives have previously attacked authorities in the U.S.—indicating that the firm would move its offices off-shore to escape the U.S. “Regulations through Enforcement.”
In the wake of litigation from both the U.S. Securities and Exchange Commission, or SEC, and now Tetragon, XRP has lost its spot as the fourth-largest market capitalisation cryptocurrency. According to figures from CoinMarketCap, XRP’s $10.3 billion market cap is behind Litecoin’s $10.5, with LTC rising by 26 percent over the last seven days, while XRP’s market cap has stagnated. Litecoin’s first “flipped” XRP on Sunday, but it was a short-lived move.
In December, SEC hired Brad Garlinghouse, CEO of Ripple, and Chris Larsen, co-founder, to execute a “unregistered, ongoing digital asset securities offering” for their XRP sales. The case is set for a simulated pre-trial meeting in February.
Since the news, crypto exchanges like Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy, and CrossTower have distanced themselves from XRP. Some have announced that they would stop trading for XRP, while others will uninstall the token completely.
At the time of publishing, the price of XRP was $0.22, down 70 per cent since late November.
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